Butea monosperma (Lam.) Taub is a member of the Fabaceae family that is found throughout India and the Asian hemispheres. For centuries, traditional Asian medicines have made use of this plant. It has been used to treat a variety of ailments including cancer, diabetes, diarrhoea, dysentery, fever, and jaundice. Recent in vivo and in vitro research has revealed that it has anti-diabetic, anti-cancer, anti-inflammatory, anti-asthmatic, anti-oxidant, anti-convulsant, anti-microbial, anti-viral and hepatoprotective properties. The aerial part of the plant is rich in phytochemicals, particularly flavonoids, lactones, diterpenoids, diterpene glycosides, and phytosterols. This summary will go over recent discoveries about the mechanisms, traditional and folk medicinal uses, and remarkable biological activity of Butea monosperma.